AINS 103 Questions with CORRECT Answers
Question:
Which one of the following best describes real property?
Answer:
Select one:
Question:
D. Vehicles, merchandise, furniture, tools, and similar items.
Answer:
C. Tangible property that includes land,
structures permanently attached to the land, and whatever is growing on the land.
Question:
Extra expenses are expenses, in addition to ordinary expenses, that an organization
incurs to mitigate the effects of a business interruption. Which one of the following is an
example of an extra expense?
Answer:
Select one:
Question:
D. Payroll of key employees
Answer:
A. Cost to rent temporary office space
Question:
Upon entering a restaurant, a customer grasped a handrail that broke off, causing the
customer to fall and break his wrist. This is an example of which one of the following
types of commercial general liability loss?
Answer:
Select one:
Question:
D. Products and completed operations liability
Answer:
A. Premises and operations liability
,Question:
The liability loss exposure that exists when an organization is legally responsible for
bodily injury or property damage caused by an accident that occurs on an organization's
owned, leased, or rented property is Select one:
A. Professional liability.
B. Property liability.
C. Operations liability.
D. Premises and operations liability.
Answer:
D. Premises and operations liability.
Question:
Automobile liability exposures can result from Select one:
A. Damage to or destruction of an owned vehicle.
B. Loss of use of an owned automobile.
C. Workers compensation laws.
D. Hiring or borrowing an automobile.
Answer:
D. Hiring or borrowing an automobile.
Question:
To be covered under a workers compensation statute, an injury or disease (in most
states) must meet which one of the following requirements?
Answer:
Select one:
Question:
D. Result in total disability
Answer:
C. Arise out of employees' job-related injuries and diseases
,Question:
Cyber risk intellectual property loss exposures include Select one:
A. Cyber extortion of trade secrets.
B. Personal and advertising injury liability.
C. Loss to tangible property.
D. Property damage liability.
Answer:
A. Cyber extortion of trade secrets.
Question:
As part of its assessment of its cyber risk, an organization should consider whether
there are any intangible property exposures. Which one of the following would best be
classified as an intangible property loss?
Answer:
Select one:
Question:
D. There is a fire in the storage area which destroys the backup copy of the office
computer
system.
Answer:
B. The computer system is hacked and data including credit card numbers are stolen.
Question:
A commercial building may contain furniture, machinery and equipment and finished
products. Which one of the following is the term generally used in property insurance
policies to refer to all these types of property?
Answer:
Select one:
Question:
D. Commercial property
Answer:
A. Business personal property
, Question:
A family recently purchased a new home constructed by a residential home builder. Two
months after taking possession, several of the family members were injured when the
roof suddenly collapsed. The family sued the construction company and was awarded
monetary damages for their injuries. This is an example of which one of the following
types of commercial liability loss exposure for the construction company?
Answer:
Select one:
Question:
D. Employers liability
Answer:
C. Completed operations liability
Question:
Which one of the following is an example of injury or damage arising from an occurrence
that would be covered by the products and completed operations liability portion of the
Commercial General Liability (CGL) Coverage Form?
Answer:
Select one:
Question:
D. A customer is injured when she slips on a wet floor in a store.
Answer:
A. A defective gas range manufactured
by the insured explodes causing injury
Question:
Joe Motors, which services automobiles, wants to maintain the goodwill of its customers.
This is best accomplished by Select one:
A. Purchasing garage liability insurance.
B. Purchasing garagekeepers insurance.
C. Lowering the physical damage deductible under its business auto insurance.
D. Raising liability limits under its business auto insurance.
Answer:
B. Purchasing garagekeepers insurance.
Question:
Which one of the following best describes real property?
Answer:
Select one:
Question:
D. Vehicles, merchandise, furniture, tools, and similar items.
Answer:
C. Tangible property that includes land,
structures permanently attached to the land, and whatever is growing on the land.
Question:
Extra expenses are expenses, in addition to ordinary expenses, that an organization
incurs to mitigate the effects of a business interruption. Which one of the following is an
example of an extra expense?
Answer:
Select one:
Question:
D. Payroll of key employees
Answer:
A. Cost to rent temporary office space
Question:
Upon entering a restaurant, a customer grasped a handrail that broke off, causing the
customer to fall and break his wrist. This is an example of which one of the following
types of commercial general liability loss?
Answer:
Select one:
Question:
D. Products and completed operations liability
Answer:
A. Premises and operations liability
,Question:
The liability loss exposure that exists when an organization is legally responsible for
bodily injury or property damage caused by an accident that occurs on an organization's
owned, leased, or rented property is Select one:
A. Professional liability.
B. Property liability.
C. Operations liability.
D. Premises and operations liability.
Answer:
D. Premises and operations liability.
Question:
Automobile liability exposures can result from Select one:
A. Damage to or destruction of an owned vehicle.
B. Loss of use of an owned automobile.
C. Workers compensation laws.
D. Hiring or borrowing an automobile.
Answer:
D. Hiring or borrowing an automobile.
Question:
To be covered under a workers compensation statute, an injury or disease (in most
states) must meet which one of the following requirements?
Answer:
Select one:
Question:
D. Result in total disability
Answer:
C. Arise out of employees' job-related injuries and diseases
,Question:
Cyber risk intellectual property loss exposures include Select one:
A. Cyber extortion of trade secrets.
B. Personal and advertising injury liability.
C. Loss to tangible property.
D. Property damage liability.
Answer:
A. Cyber extortion of trade secrets.
Question:
As part of its assessment of its cyber risk, an organization should consider whether
there are any intangible property exposures. Which one of the following would best be
classified as an intangible property loss?
Answer:
Select one:
Question:
D. There is a fire in the storage area which destroys the backup copy of the office
computer
system.
Answer:
B. The computer system is hacked and data including credit card numbers are stolen.
Question:
A commercial building may contain furniture, machinery and equipment and finished
products. Which one of the following is the term generally used in property insurance
policies to refer to all these types of property?
Answer:
Select one:
Question:
D. Commercial property
Answer:
A. Business personal property
, Question:
A family recently purchased a new home constructed by a residential home builder. Two
months after taking possession, several of the family members were injured when the
roof suddenly collapsed. The family sued the construction company and was awarded
monetary damages for their injuries. This is an example of which one of the following
types of commercial liability loss exposure for the construction company?
Answer:
Select one:
Question:
D. Employers liability
Answer:
C. Completed operations liability
Question:
Which one of the following is an example of injury or damage arising from an occurrence
that would be covered by the products and completed operations liability portion of the
Commercial General Liability (CGL) Coverage Form?
Answer:
Select one:
Question:
D. A customer is injured when she slips on a wet floor in a store.
Answer:
A. A defective gas range manufactured
by the insured explodes causing injury
Question:
Joe Motors, which services automobiles, wants to maintain the goodwill of its customers.
This is best accomplished by Select one:
A. Purchasing garage liability insurance.
B. Purchasing garagekeepers insurance.
C. Lowering the physical damage deductible under its business auto insurance.
D. Raising liability limits under its business auto insurance.
Answer:
B. Purchasing garagekeepers insurance.
